What are the properties of your video file (including file extension) that you have imported? Are you (manually) setting a project preset to match the properties of the video file? Or, are you letting the project do that automatically based on its analysis of the properties of the file first dragged to the project's Timeline?

And, when your file gets to the Expert workspace Timeline, is there an orange line over its content?

I am assuming that the file on your CD is a save location for a file recorded by your camera. If so, knowing the brand/model/settings of the camera that recorded the video would prove helpful in the troubleshooting. If that is not the case and there are any protection issues associated with the file, a factor might be Premiere Elements does not supported protected material.

Let us rule in or out these factors and then decide the plan for the troubleshooting.